Trade Volume Index: Classifying Accumulation and Distribution
Summary
The Trade Volume Index (TVI) is presented as an oscillator for identifying whether a security is being accumulated or distributed. It uses a minimum tick value as its input threshold. A price difference above the positive threshold is classified as buying pressure, while a difference below the negative threshold is classified as selling pressure. Changes inside those bounds are not characterized in the excerpt.
The description offers a high-level rule rather than a complete account of the indicator. It refers to a comparison between the current price and the prior index value, but gives no formula for updating the index, no explanation of how volume enters the calculation, and no chart examples or performance results. It also does not specify a trading strategy, timeframe, or threshold-selection procedure. The signal can therefore be understood as a directional classification concept, but the document alone is insufficient to reproduce the full calculation or assess its usefulness in trading.
Key ideas
- TVI is described as a tool for classifying accumulation and distribution.
- A minimum tick value sets the threshold for its directional classification.
- Values beyond the positive threshold indicate buying, while values beyond the negative threshold indicate selling.
- The excerpt omits the full index formula and provides no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.